Microsoft Official Said the Activision Contract is Fair: Because PlayStation offers so many exclusive titles, Xbox’s acquisition of Activision Blizzard was deemed fair by Microsoft president and vice chairman Brad Smith.
According to Bloomberg, during Microsoft’s annual shareholder’s meeting, Smith suggested the company will use Sony’s market dominance as justification for its $68.7 billion acquisition of Activision Blizzard.
Microsoft's president and vice chairman said Xbox's acquisition of Activision Blizzard is fair because PlayStation has significantly more exclusive games. https://t.co/vrHhzFXODR
— IGN (@IGN) December 14, 2022
Microsoft Official Said the Activision Contract is Fair
The Federal Trade Commission (FTC) indicated earlier in December that it will seek to prohibit the massive merger, and the business has stated that it will fight the transaction in court.
Smith explained that the FTC’s claim hinges on the existence of “two companies and two products,” namely the PlayStation and the Xbox.
I'm pretty sure Xbox has more exclusives than PlayStation now, actually. The difference is that Xbox isn't utilizing their exclusives like they said they would.
If they focused more on reviving the dormant IPs from the studios they've already acquired, they'd be set. 🤷
— Xelstrin (@Xelstrin) December 14, 2022
“When looking at the worldwide market as a whole, Sony controls 70% and we control 30%. The judge’s first order of business will be to determine whether the FTC complaint is a case that will promote competition or whether it is instead a case that will protect the largest competitor from the competition.”
Smith noted that although Xbox has 59 exclusives, PlayStation has 286. This means that the administrative law judge will have to evaluate whether or not increasing the age limit from 59 to 60 poses a substantial threat to competition and therefore warrants halting the proposal.
The Federal Trade Commission (FTC) stated its opposition to the acquisition on December 8, claiming that it will “harm competition in high-performance gaming consoles and subscription services by restricting or degrading rivals’ access to its popular content.”
That makes no sense? All of Sony top games are from studios they bought. Microsoft is not just buying exclusive rights they are buying the studio. But Sony often buys exclusive rights or time exclusive and no one seems to care. Microsoft is just buying at a larger level thats it.
— XO_elixer (@elixertips) December 14, 2022
Not only has the FTC voiced concerns about the purchase, but so have the European Commission and the Competitions and Markets Authority in the United Kingdom.
Maybe they have more exclusive because they work with good studios and then buy them not just buy exclusives because your too lazy to make your own experiences. Millionaires preaching about how it’s so unfair well maybe release something not shitty for once smh
— LStudios (@LStudios3) December 14, 2022
Frequently asked questions
Can Microsoft legally buy Activision?
Assuming regulatory and shareholder approval, the deal is slated to finalize in the spring of 2023, making Microsoft the sole owner of Activision, Blizzard Entertainment, and King under the Xbox Game Studios banner.
Why is the FTC suing Microsoft?
Microsoft, the parent company of LinkedIn, is being sued by the FTC for its attempted $69 billion takeover of video game behemoth Activision Blizzard. After weeks of rumored conversations between the FTC, Microsoft, and Sony, the agency filed suit claiming that the transaction will reduce competition in the game sector.
What is Microsoft gonna do with Activision?
As a result of the acquisition, Microsoft will have full control over several popular game brands, including the Call of Duty, World of Warcraft, and Candy Crush series. It also establishes Microsoft Gaming, which will be headed by Phil Spencer, currently the director of Microsoft’s Xbox division.
Is Microsoft buying Activision a monopoly?
Antitrust authorities in the United Kingdom are worried that Microsoft’s megamerger with Activision Blizzard would lead to monopolization in the emerging cloud gaming market.
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